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What Makes the Stock go UP and DOWN
Stock manipulation. Stocks are people and people have emotions. Whenever a stock increases it's in high demand and people or investors are buying. Another factor that comes to play is earnings call. An earnings call is when a company schedules a conference call to discuss a financial report from the previous quarter. During the earnings call there will be two things to out look for. EPS (earnings per share) and total revenue for the quarter(every three months). If they beat the expected earnings on both categories the stock will likely rise. But beware the stock will decrease after it rallies and we can create our own strategies. Always follow on social media the CEO of the company you invest in because what they do, say, or report will manipulate the stock. Great news will cause the stock to skyrocket.
The main reason a stock decreases because of fear and people are selling to collect profits. A stock can reach to an all time high and investors may feel it reached its peak so they sell to capture profits. Bad news from the media or company can also raise concerns from investors which provokes them to sell. Check any stock up until march of 2020 and see how it tremendously plummet. COVID-19 occurred in march. CEO's and the president of the United States plays a major role for a stock to rise or decline. For example, In late 2018, Elon Musk CEO of Tesla, appeared on a recorded podcast smoking marijuana and drinking whiskey. The following days Tesla stock plunged as investors took offense to that. Also, if quarterly earnings doesn't meet expectations the stock may potentially drop. Usually when we see a sale at our favorite name brands we run straight to purchase. Well, If the Stock DROPS it's a SALE so BUY MORE.
Take Warren Buffet's "be fearful when others are greedy, and greedy when others are fearful” Advice.
When everyone is panic selling that's when you buy more stocks and that's also considered sale. When everyone is buying that's where you should be careful so you don't overpay for an asset.
Which Stocks Should I Invest in?
That's a great question. Whatever the government or society will fund the most is where you should focus on. If you watch and listen to what Joe Biden's main focus for the economy then you'll have an idea which stocks to buy. Tech, Energy, Health Care, Defense, and Industrial should be on an investors watchlist. EV stocks such as Tesla and NIO. Invest only what you're comfortable losing. I'll give you some picks below.
But I Don't Know How to Read a Chart...
It's cool, you won't have to for now. As a beginner, just take a look at that last 2-3 weeks of the stock you plan on buying. For instance, simply type in "Shopify stock" or any stock on google. Navigate through the days, weeks, months to determine the stock's potential, and recent news that could positively impact consumers. If you notice a steady increase throughout the past few weeks and months then you should consider buying. BUY LOW SELL HIGH. See example below.
March 19, 2020 Shopify's stock fell to $332.50 a share due to COVID-19 and now is worth $1,139.49 a share as of January 7, 2021. Shopify is a platform where consumers can buy or sell products online. This is a perfect investment during a lockdown! Stores were closed, many lost their jobs and people had curfews so they stayed home. It forced people to shop online, and sell products for a living, and become creative. Shopify is more valuable than ever. Just imagine if some bought 5 shares for $1662.50 ($332.50x5). It would be worth $5,697.45 ($1,139.49x5) today.
Hint:
Ever heard of "Don't Judge a Book by it's Cover"? Same rules apply for stocks. Don't judge a stock by it's price. So don't miss out on a stock that seems expensive if you can afford it.
Stock Move in Groups
We call them sister stocks. Stocks that are in the same category have similar chart patterns. Sister stocks would include Facebook, Twitter, and Snap Inc are all social media stocks. EV (electric vehicles) stocks include Tesla, NIO, Nikola, Workhorse, LI Auto, XPeng, and GM motors. So these stocks follow the leader for each category which would be Facebook and Tesla. If they both have good or bad days, then more than likely sister stocks below them will follow.
Hint:
Learn From Your Mistakes. It's like starting a new job or relationship it gets bumpy in the beginning and it's totally normal. I made a lot of mistakes and the world's top investors has as well. It's what you do next that counts.
My Stock Picks
I'll give you a combination of EV stocks, Tech, Cryptocurrency mining, and cheaper stocks that can possibly flourish over the next few months. These are the stock ticker symbols so just simply put it in your search and watchlists. AAPL, TSLA, NIO, SOLO, BLNK, GDRX, SUNW, MARA, FCEL, DASH, ABNB, AYRO, AITX, CLNE, LI, WKHS, and RTX. These are my personal opinions.
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